Published on 10/3/2018 in the Prospect News Investment Grade Daily.
New Issue: Enterprise Products Operating sells $3 billion of notes in three parts
By Cristal Cody
Tupelo, Miss., Oct. 3 – Enterprise Products Operating LLC priced a $3 billion three-tranche offering of senior notes (Baa1/BBB+/BBB+) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $750 million of 3.5%notes due Feb. 1, 2022 at 99.985 to yield 3.506%, or a spread of Treasuries plus 55 basis points.
A $1 billion tranche of 4.15% 10-year notes priced at 99.764 to yield 4.179%. The notes priced with a Treasuries plus 100 bps spread.
Also, $1.25 billion of 4.8% notes due Feb. 1, 2049 priced at a spread of 150 bps over Treasuries, or 99.39 to yield 4.839%.
The notes are unconditionally guaranteed by Enterprise Products Partners LP.
Bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Barclays, Mizuho Securities USA LLC, MUFG, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.
Proceeds will be used to repay debt, including borrowings outstanding under the company’s commercial paper program, and for general company purposes.
The midstream energy services provider is based in Houston.
| Issuer: | Enterprise Products Operating LLC
|
| Guarantor: | Enterprise Products Partners LP
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| Amount: | $3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, SMBC Nikko Securities America, Inc., Barclays, Mizuho Securities USA LLC, MUFG, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | BBVA Securities Inc., Deutsche Bank Securities Inc., DNB Markets, Inc., J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SG Americas Securities, LLC and TD Securities (USA) LLC
|
| Co-managers: | BMO Capital Markets Corp., Credit Agricole Securities (USA) Inc. and PNC Capital Markets LLC
|
| Trade date: | Oct. 3
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| Settlement date: | Oct. 11
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
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| Amount: | $750 million
|
| Securities: | Senior notes VV
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| Maturity: | Feb. 1, 2022
|
| Coupon: | 3.5%
|
| Price: | 99.985
|
| Yield: | 3.506%
|
| Spread: | Treasuries plus 55 bps
|
| Call features: | At any time at greater of par or Treasuries plus 10 bps
|
|
|
| 10-year notes
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| Amount: | $1 billion
|
| Securities: | Senior notes WW
|
| Maturity: | Oct. 16, 2028
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| Coupon: | 4.15%
|
| Price: | 99.764
|
| Yield: | 4.179%
|
| Spread: | Treasuries plus 100 bps
|
| Call features: | Make-whole call before July 16, 2028 at greater of par or Treasuries plus 15 bps; thereafter at par
|
|
|
| 30-year notes
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| Amount: | $1.25 billion
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| Securities: | Senior notes XX
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| Maturity: | Feb. 1, 2049
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| Coupon: | 4.8%
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| Price: | 99.39
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| Yield: | 4.839%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call before Aug. 1, 2048 at greater of par or Treasuries plus 25 bps; thereafter at par
|
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